1. ACCESS TRAVELS
Unique Accessible Tour Experience
An interesting business opportunity for investors who can offer an amount of SEK 2,775,800
in return for 20% share of the business.
Business Plan
ALAGURAJA.S.P
EDWARD MBUYA
2. 1.0 EXECUTIVE SUMMARY: ....................................................................................................................................3
1.1 THE BUSINESS IDEA:..............................................................................................................................................4
1.1.1 Pain Statement:...........................................................................................................................................4
1.1.2 Value Proposition: .......................................................................................................................................5
1.1.3 How to make Profit: ....................................................................................................................................5
2.0 SERVICES:.........................................................................................................................................................5
2.1 OFFER:...................................................................................................................................................................5
2.2 COMPETITORS & POTENTIAL PARTNERS:.......................................................................................................................6
2.3 FULFILLMENT: .........................................................................................................................................................6
2.4 PACKAGES: .............................................................................................................................................................7
2.4.1 Potential customer’s testimonial 1:.............................................................................................................7
2.4.2 Potential customer’s testimonial 2:.............................................................................................................8
2.5 FUTURE SERVICES:..................................................................................................................................................10
3.0 CUSTOMERS AND MARKETS/ THE MARKETING PLAN: ...................................................................................10
3.1 PROBLEMS AND NEEDS:...........................................................................................................................................10
3.2 MARKET / CUSTOMERS:..........................................................................................................................................11
3.3 COMPETITOR ANALYSIS:..........................................................................................................................................15
3.4 MARKETING:.........................................................................................................................................................15
3.5 SALES: .................................................................................................................................................................16
3.6 HOW TO MAKE MONEY: ..........................................................................................................................................16
4.0 FINANCIAL PLAN: ...........................................................................................................................................17
4.1 IMPORTANT ASSUMPTIONS:.....................................................................................................................................18
4.2 BREAK –EVEN ANALYSIS:.........................................................................................................................................18
4.3 FINANCIAL PROJECTIONS - 3 YEARS............................................................................................................................19
5.0 BUSINESS MODEL:..........................................................................................................................................20
5.1 CUSTOMER VALUE PROPOSITION ..............................................................................................................................20
5.2 KEY RESOURCES.....................................................................................................................................................20
5.3 KEY PROCESSES......................................................................................................................................................21
5.4 PROFIT FORMULA ..................................................................................................................................................22
6.0 IMPLEMENTATION PLAN:...............................................................................................................................24
6.1 VISION:................................................................................................................................................................24
6.2 POSITIONING:........................................................................................................................................................24
6.3 PRICING: ..............................................................................................................................................................24
6.4 SALES STRATEGY: ...................................................................................................................................................24
6.4.1 Sales forecast: ...........................................................................................................................................24
6.5 PROMOTIONS:.......................................................................................................................................................25
7.0 RISKS AND OPPORTUNITIES: ..........................................................................................................................25
8.0 OFFER TO INVESTORS:....................................................................................................................................26
8.1 EXIT.....................................................................................................................................................................27
9.0 REFERENCES...................................................................................................................................................29
10.0 APPENDIX: ...................................................................................................................................................30
10.1 FINANCIAL PROJECTIONS - 3 YEARS..........................................................................................................................30
3. 3
1.0 Executive Summary:
Access Travels will be operational from January 2012 and will offer accessible tourism services to
people with disability, elderly and the visually impaired. The service will be for people who are
interested in exploring Blekinge region of Sweden and the target customers will be from Sweden and
the whole of Europe.
There is a big potential for tourism services as currently there is no company that offers accessible
tourism for this group of customers. The potential for tourism growth in Sweden is very impressive and
in 2009 it had a total turnover of SEK 251.7 billion of which 45 percent accounts for domestic leisure
travelers and over 37 percent foreign visitors.
Access Travels is fully prepared and dedicated to offer a great unique tour experience to our potential
customers by providing support personnel, Travel Consultation, pre-arranged tours, reservations for
lodging, local transportation, equipments renting, exciting customized packages and other services.
Objectives
Access Travel’s projected goals for a period of 3 years are:
To get at least 300 customers in the first year. 600 customers in the second year and 1000
customers in the third year. The trend is expected to keep growing for the following years.
Develop a mutual benefit relationship with Hotels, equipment manufacturers for wheel chairs
etc, Health and SPA centers and other entertainment businesses
Develop payment systems for customers to pay when they arrive at our offices or over the
internet.
Key to success
In order for Access Travels to be able to meet its goals several things need to fall in place.
Targeting a Specific Market niche which is disabled, elderly and vision impaired people.
Take advantage of early entry to market by building good reliable reputation for customers.
Being able to have loyal group of customers in order to reach sales forecasts.
Always trying to offer unique tour experience at a fairly affordable price.
4. 4
Less administrative costs and overheads which in turn helps to offer good value to the
customers
The company is a partnership firm by two entrepreneurs situated in the region Blekinge, South of
Sweden. The entrepreneurs will be part of the management and as employees. The company is one
among the very few travel operators located in the region and the only company that is dedicated to
offering tour travels for disabled people.
After the initial investment of SEK 2,775,800 it is expected that through intensive marketing programs
and sales it will be possible for the business to break-even in the second half of the first year.
1.1 The business Idea:
The business idea is to start a tourist operator company in Blekinge with focus on accessibility to
attract customers to explore the hidden secrets of Blekinge. Barrier-free tourism with accessibility
options at an affordable price for the disabled and elderly is the niche of the company. The company
makes money by charging individual customers and renting services & equipments.
1.1.1 Pain Statement:
There is a problem for disabled and elderly people to have safe and unique tourism experience
taking into consideration the kind of support necessary for them to be able to visit different tourist
places. Currently, there is lack of dedicated specialized travel operator in Blekinge and Sweden who
offers tourism services to people with accessibility difficulties. Access Travels aims to transform travel
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2012 2013 2014
Income/Expense/Result
Expenditure
Income
Profit
Poly. (Profit)
5. 5
for the disabled to be a pleasure and unique experience. Access Travels will be the only company in
Sweden that is fully dedicated to help customers enjoy tourism activities by providing support
personnel, equipments, exciting customized packages and other services.
1.1.2 Value Proposition:
To provide all kinds of accessibility tourism services to the needy such as disabled, elderly etc. at
an affordable price.
1.1.3 How to make Profit:
Access Travels generates profit from the money customers pay for being benefitted by the
service provided by the company. The company will work towards achieving a profit of 15-20% of the
money from every customer package on a collective basis.
2.0 Services:
Access Travels provides tourism services for the differently-abled and the elderly clients from
Sweden and Europe with a safe and fun filled trip in Blekinge. Services include Travel Consultation, pre-
arranged tours, Customized packages, reservations for lodging, local transportation etc. Access Travels
seek to be unique by focusing on accessibility.
2.1 Offer:
There is no tourism company in Sweden offering all the services under one platform as offered by
Access Travels. These services might be available at different places in Sweden but we are the only one
to provide them as packages and tailored as per customer’s choice. Our offer includes:
Dedicated visitation tours in Blekinge’s beautiful places for differently-abled people and the
elderly
Assistance to differently-abled people and the elderly so that they can safely enjoy the tour i.e.
Support Personnel
Opportunities for the whole family to go on tours without having to worry about their disabled
family members because we are there to support them.
6. 6
Friends offering support to a disabled person Personalized Vehicle and support personnel
Personalized vehicles i.e. adjustable seats, temporary ramps and hydraulic lifts
Accessible packages for places with and without accessibility options
Website that supports visually impaired use and brochures with Braille functionalities
Opportunities for customers to rent equipments i.e. Wheel Chairs Shower chairs, Crutches etc.
Attractive individual, group and Personalized packages at fairly affordable prices
Attractive package for students and group discounts
2.2 Competitors & Potential partners:
The greatest strength of the company against competition is that there is no competitor in
Sweden offering accessible tourism for disabled people. But on the other hand there are rather big
established players with a huge market focus targeting non-disabled people and they cover the whole of
Sweden and Europe. The current trend in the industry demands small travel agencies to set up
themselves as specialists in a sector. Access travels differentiates itself in the market as a company with
focus on accessibility. Some of our future competitors and potential partners might be Big Travel and
Första Resebyrån from Blekinge, N &N Resor and Latitude Travel from Europe etc. We are in discussion
with few travel companies for a possibility to partner up with them.
2.3 Fulfillment:
Access Travels will have a closed group of well trained employees including nurses and physical
therapists with the expertise to guide and take proper care of disabled and elderly people during their
tours.
7. 7
Access Travels will establish healthy relationships with business partners such as
Hotels
Equipment manufacturers
Health and SPA centers
Other Entertainment businesses etc. in order to have the best deals negotiated specifically
from the suppliers and will maintain powerful position with the ability to substitute and with
low, initial cost of changing.
2.4 Packages:
The packages will be divided into three main segments. Every package is designed considering
the customer will tour for three days.
Elderly people package
The elderly package includes exciting activities that could be of great interest to elderly people
such as Historical Tour to places like Karlshamn, Karlskrona etc, Exhibitions and Art Galleries, churches
etc. they might want to visit at different places in Blekinge, Health and SPA’s, physical therapy that
would help them be strong, Kayaking, fishing, boating etc. The elderly package would aim towards more
relaxing activities and to make them enjoy the distinctive serenity and the natural beauty of Blekinge.
Customer fishing Historical Tourist spot - Karlskrona
2.4.1 Potential customer’s testimonial 1:
”Det nya konceptet med turisttjänster för äldre och rörelsehindrade är ett värdefullt tillskott till vår vård
och omsorg. Det möjliggör för många av oss att förverkliga drömmar om vad vi skulle kunna göra i ett normalt
8. 8
liv. Exempel på upplevelser som med fördel kan erbjudas i Blekinge är segling i skärgården, kanske till och med
kryssningar till Bornholm eller Öland.”
”The new concept of tourism services for old and differently-abled people constitutes a valuable addition to
my care and attention and will help in my rehabilitation, as it will enable realization of dreams of experiences
pertaining to a normal life, which many of us have. An example of such experience which may be offered in
Blekinge is sailing in the archipelago or even cruises to Bornholm and Öland.”
- Stefan Hellberg (61 years)
Young people package
This package is for young people who are excited and happy with activities that are a bit riskier
like rock climbing, scuba diving, Kite surfing, horse riding, Swimming, physical therapy (with guides on
evenings) and Canoeing. Youngsters will also have visits to places such as Karön islands, Brunns Park,
Foundry and Enamel Museum etc.
The pictures here showcase a personal assistant/guide with a disabled customer.
2.4.2 Potential customer’s testimonial 2:
As a wheelchair person,
1. I would expect my tour operator to pick me up on arrival in a taxi which can take me in with my wheelchair.
2. I would love to travel in Boats.
3. I would prefer to have a guide who can understand handicapped people.
- Selvakumar Ramachandran (31 years)
9. 9
Potential customer participating in sports Customer and his guide on a walking tour
Kids and Family Package (Family 2 Adults and 3 children)
This package is for customers coming as a family. The proposed package includes activities both
for the other members and the differently abled member such as Hällevik’s camping, Eriksberg Safari
Park, Car and automotive museum, Räntemålagård and Eringsboda, Marine Museum and Lekland for
kids. The tourist company shall provide compliments to the kids and other members throughout the trip
like ice creams, soft drinks, and other solid gifts in memory of Blekinge and Access Travels.
Customer camping Kids at Lekland
Prices vary approximately from SEK 5000 – 8000 depending on the type of package chosen and season.
Accommodation and regular course meal is not included in the package price.
Winter Packages: Experience Christmas and New Year in Blekinge with skiing, winter camps and other
exciting indoor activities
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Outside Trips: Poland, Lithuania, Denmark, India, Tanzania, South Africa, Thailand etc. Outside trips are
planned with the strong network of tourist companies dealing with accessibility in respective countries
for customers in Blekinge and Sweden. These trips will be arranged when Blekinge is off season.
2.5 Future Services:
Access Travels will have an office space at Blekinge initially and will expand its services to the
whole of Sweden and Europe after a successful initial reach through its indomitable services. The
company will increase its network in Europe and other continents like Asia, Africa etc. where it can offer
similar services through trustworthy business partners. Access travel’s long term goal is to establish the
company and its position as a globally renowned provider for accessible tourism.
3.0 Customers and Markets/ The marketing Plan:
Access Travels focuses on tourism in the Blekinge region for customers in Sweden and Europe. Access
Travels aims to serve disabled and the elderly population in Europe who were over 96 million by 2005.
3.1 Problems and needs:
There are more than 2 million people in Sweden and 98 million in the whole of Europe who need
accessible services to live a normal life, equivalent to people who are not disabled. Sweden ensures
accessibility at all possible places with laws regulated as part of its constitution. Although these laws
make daily life activities easy for differently-abled and the elderly, tourism and tourist activities are not
the same when it comes to them compared to those who are not disabled. Challenge starts from the
time they start from their home to a tourist spot till they reach home safely. They will need:
To have a personal assistant
To carry wheel chairs, if they travel by flight
To book hotels with disabled accommodation
To access ferries with disabled accommodation
Taxi facility and booking
Vehicles to accommodate them with their wheel chairs during the entire tour
To access Tourist spots
11. 11
Unfriendly stairway Customer taking a ferry
There is a need for a professional who can understand the mindset of this sensitive group of customers,
find a way to solve the issues and help them with the facilities that are existent. Access Travels will be
the professional with nurses, physical therapists and other professionals who can take care of these
customers, offer services and bridge the gap helping customers utilize the facilities available effectively
and creating facilities for the customers to feel fulfilled.
3.2 Market / Customers:
The Accessible tourism company has 4 groups of potential customers:
Mobility impaired people
Elderly people
Visually impaired people
Family and friends accompanying disabled people
Our target market is Sweden and the whole of Europe. According to Eurostat (2003) within the age
group of 16 to 64years in Sweden the disabled people accounted for 19.9% of the country’s population
which is approximately 1.2 million people. The breakdown of the disabilities in the figure shows that
Mobility impairment alone accounts for 37% of the whole disabled community. Other hidden
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impairment disability such as dysfunctions of the heart, blood pressure etc. will not be the focus of our
business model and in most cases these people don’t require much physical support on tours.
Mobility impaired people
Various researches done into the number of mobility impaired people in Europe presents a
significant figure for a business. According to Eurostat (2005), In Sweden alone Mobility impairment
claims 42.7% of all the people with disability condition. This 42.7% is equivalent to 500,900 people; in
the wider scale the whole of Europe has a total number of 14,332,600 mobility impaired people. The
figures present a very considerable market potential to explore.
Elderly people
The population of elderly people grows at a very fast rate in Europe. The table below presents
the rate at which ageing population increases, the projections are for years 2005 and 2025.
Ageing population (2005-2025)
European Union
Population > 65 in 2005 Population > 65 in 2025
Increase in Percentage
Population % Population %
Germany 15577000 18.9 19815000 24.6 27.2
United Kingdom 9536000 15.8 12996000 20.4 36.3
Sweden 1568000 17.4 2158000 23.2 37.6
France 9962000 16.4 13980000 22.2 40.3
Source: Eurostat, 2005b
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In 2005, 17.4% of Sweden’s population was above 65 years equal to 1,568,000 people and the
projections for 2025 shows 23.2% of Sweden’s population will be above 65 years of age which is a little
more than 2 million people.
In Europe for 2005, a total of 76 million people were above 65 years of age and the projections for the
2025 shows that the number will reach 103 million. The numbers are significant enough to present a
business demand for accessibility tourism with good profit now and for the years to come. This inspired
us to include the old people as potential business customers for our business model due to the
challenges faced by old people in accessing tour places and the need to support their enjoyment.
Visual disabilities
This segment of disabled people has not been considered for much of tourism activities. Our
business model will accommodate people with visual challenges. In 2006, there were 175 000 visually
disabled people in the age group of 16 – 84 years in Sweden. (Source: Mail from Karlskrona Kommun
handikappförvaltningen) This number presents a good business opportunity for a company that can
offer reliable unique experience for this group of society.
The table below presents the market size and segment and it can be seen that by considering the three
main categories of customers we intend to focus on (Mobility impaired, Visual impaired and Elderly
people),in 2005 Sweden alone had over 2 million people, so these are potential customers for our
business.
Market size per country and market segment
Country Mobility Impaired Visual Impaired
Elderly population
(> 65)
TOTAL demand for accessibility
Germany 1 124 400 109 500 15 577 000 16 810 900
UK 3 486 700 185 800 9 536 000 13 208 500
Sweden 500 900 21 100 1 568 000 2 090 000
France 3 764 000 943 400 9 962 000 14 669 400
Source: Eurostat, 2005; Statistisches Bundesamt, 2003a; U.S. Census Bureau, 2005
The total demand for accessible services in the whole of Europe is also very impressive. In year 2005
there were more than 98 million people in Europe in need of accessible services. The number of people
in need of accessible services presents us with a potential number of customers that we can explore and
make successful business.
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Travel motivations
What makes disabled people do tourism activities despite the challenges they face in regard to
their physical being and the inaccessible tour places? In order to be able to make a business out of
supporting disabled and elderly people to do tourism activities, it is important to understand the
motives behind their wish to tour the world which will help us planning the kind of packages that we
offer them, minimize the risks and the costs associated with the trip.
A study done in the UK on visual, hearing and mobility impaired people found that disabled people like
to go to holidays despite the challenges that they face, for the families with disabled child the motive
behind their wish to go to holidays was to have a happy time as a family and give their children new
experiences, for the adult people the reason for taking holiday was a desire to travel and having new
experiences (NOP Consumer 2003 UK).
Another study done in the UK found that the motive behind most disabled people travelling for holidays
was to have rest, relaxation, the feeling of freedom and the experience of visiting new places (Shaw et
al 2004 UK).
A study done in Germany tried to compare the motives for travelling between disabled people and
overall Germany population, the majority of the results was that the reasons were the same i.e. relaxing,
de-stressing and pressure relief, though there were minor differences between the two groups (BMWA
2004 Germany).
The identified travel motivations for German disabled travelers and elderly people included:
Relaxing/de-stressing/pressure relief
Health climate
Improving one’s health
Recharging batteries and
Experiencing nature
When the above motivations are compared to those of the overall German population the difference in
motivations is very small. The overall German population’s motivations which are slightly different are
getting away from it all, freedom/leisure time and sun/warmth/good weather.
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Another study presents the motives behind Elderly people to go on holidays as having rest and
relaxation, opportunities for social interaction, physical exercise, learning, excitement, exposure to new
situations and escape from daily life (Burnett et al 2001; Wang et al 2005).
3.3 Competitor Analysis:
There is no direct competition for the business. There are few good services offered by the local
municipality and other NGO networks but the services offered by Access Travels are competent enough
as they are custom-made and will utilize the services offered by other organizations as support
activities.
The indirect competition for the company shall be the local tourist operators and the big and established
ones. The company shall outdo this competition as they do not offer similar service and the big
operators have a different focus with a huge target market. There are possibilities of future competition
and the company shall be updated with the market and be a market leader in the segment.
3.4 Marketing:
Marketing will be done through several channels such as:
Organizations dealing with disability in and around Europe
There are several popular non government and other organizations dealing with improving
accessible facilities in Europe like the ENAT (European Network for Accessible Tourism), ANED
(Academic Network of European Disability Networks), EDF (European Disability Network) etc. The
company will market through these networks as they are reachable worldwide.
Social and networking communities
Social communities and networks form a major part of today’s internet era. The company will
Market through social communities such as the face book, Orkut, LinkedIn etc. There will be
advertisements and separate pages through which the services will be marketed.
Frequent advertisements on News papers
Advertisements are an expensive promotional tool for small businesses. Yet, it will be required
to increase the customer base and market potential for the company to gain customers and to earn a
16. 16
reputation with the obtained customers. The company will advertise through newspapers, television,
radio, posters, magazines etc.
The company’s official website
The company’s official website will be one central point of marketing and the service can also be
purchased through the website. The website will have all possible information necessary like the list of
all packages, products and Services offered.
Local municipality’s tourist bureau
The local Municipality’s tourist bureaus are great source of marketing for the region. Tourist
bureau is the first point of contact for tourists who have less idea on local tourist operators. Marketing
through the local tourist bureau in every municipality will be a good strategy to market the company.
3.5 Sales:
Sales will be primarily through the company’s website which supports Braille features.
Customers can also book a trip by phone and pay when they arrive to the tourist county. There are
possibilities of group booking by organizations, schools and others. Access Travels will have brochures
and information leaflets on interesting tourist spots, services offered by the company to its customers,
discounts & details on hotels, shopping spots etc. The company will provide access to a complete
database on list of all available accessible places in the whole of region Blekinge.
3.6 How to make money:
Access Travels has multiple cash streams as listed below and these options will guarantee the success of
the business.
Individual cost
Access Travels will make money by charging individual customers for the services we offer. The
plan is that the company will charge a normal package fee and also charge a rent fee when customers
rent equipments such as wheelchairs from the company. Work Statistics Sweden (2008) shows that
more than 50% of the population of disabled people in Sweden have jobs, of those 65% have full time
jobs and 35% have part time jobs, the people above 65 year are retired, therefore the data proves that
disabled people have the income to make them be able to pay for various relaxation activities, if they
are presented to them.
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Rent services to other operators
Since Access Travels is dedicated to offering accessible services to disabled people, we believe
that our expertise in offering the accessible tour service will build a good relationship with other tour
operators who offer services to non-disabled people. It’s our expectation that we can rent our services
to them in case they need to get accessible services.
Rent services to schools and organizations
From the research we have done schools and different organizations rent services when they go
for study tour or on a group tour. The schools and disabled people’s organization will be our customers
because we have the expertise to offer safe reliable tour for disabled people. Disabled school kids also
have the right to attend various study tours irrespective of their physical challenges therefore we will be
there to rent such services to the schools in need of accessible services.
Advertisements in company website
Access Travels will generate income through advertisements on the company’s website by
manufacturers of the products that are focused on disabled people. Since Access Travels will have many
customers who use our website to access a lot of valuable information, it will be a good channel for
companies that intend to reach disabled people to advertise on our website.
Rent services to any other organization
We also intend to make money by offering our services to different organizations like the
Government, EU, Municipality, County, region Blekinge etc. We believe these organizations will provide
us with a good revenue source.
4.0 Financial Plan:
Our initial estimate suggests that Access travels will experience a slow and a steady growth in
the first year of operation. This is partly due to initial investment as a start-up and the seasonal factors.
However, the second year growth curve proves to be prominent and growing gradually indicating
development at a steady pace. Access Travels foresees an increase in sales volume. The financial plan
presents a realistic projection of the company’s growth.
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4.1 Important Assumptions:
The economic situation of the travel industry will not undergo a significant decline in the next
few years.
We have considered a reasonable average amount of SEK 5000 per customer which is the
minimum amount that the customer will spend during his trip excluding his stay and lodging.
The number of customers will increase by two times every year.
4.2 Break –Even Analysis:
The graph below explains the expenditure and income analysis of Access Travels. As explained
earlier the company experiences a slow and steady growth during the first year of operation and
achieves break even during the second half of the operational year.
The expenditure for January is plummeting due to the initial investment required for the assets like
personalized vehicle, marketing activities, employee salary and other necessities for the business to take
off.
Access Travels anticipates a steady growth after the second half of the first year as projected for the
next few years. There is a decrease in sales for one month in the second half as indicated in the graph
which is due to the seasonal nature of the business. The fund scenario is also projected for easier
understanding and to explain on how the business shapes with time.
0
100000
200000
300000
400000
500000
600000
700000
800000
900000
Jan
Feb
March
April
May
June
July
Aug
Sep
Oct
Nov
Dec
Income vs Expenditure
Expenditure
Income
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4.3 Financial Projections - 3 Years
Description 2012 2013 2014
EXPENDITURE
PrimaryCost
Employees 4 5 6
Employee Salary 1296000 1620000 1944000
Company Registration fees & insurance 10800 9600 9600
Website hosting and maintanence 50000 15000 15000
Vehicle and support Equipments 1000000 _ _
Office Rent 60000 60000 60000
Office facilties (computers, printers,
furnitures etc.)
35000 10000 10000
SecondaryCost
Advertising cost 75000 75000 50000
Marketing cost 30000 30000 30000
Operational Cost 84000 168000 336000
Travel cost 30000 36000 36000
Exhibitions and Conferences 45000 45000 45000
Communication (Telephone, Internet
etc.)
36000 36000 36000
Miscellaneous 24000 24000 24000
Total Expenditure 2775800 2128600 2595600
INCOME
Number of customers 306 600 1000
Income from advertisements 12000 24000 48000
Income 1542000 3024000 5048000
Net Profit -1233800 895400 2452400
Fund
Scenario
No Investment -1233800 -338400 2114000
Total investment for Marketing, Vehicle
& Employee Salary.
1281200 2176600 4629000
Total Investment required
1542000 2437400 4889800
* Amount in Swedish Kronor
* As assumption SEK 5000 per customer
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5.0 Business model:
The business model is divided into four major pillars which are crucial for the business,
Customer Value Proposition, Key Resources, Key Processes and the Profit Formula:
5.1 Customer Value Proposition
Access Travels will provide safe, accessible tourism with unique experience at an affordable price.
Safety for our customers will always come first and it is our intention to ensure that they will be able to
access all the tour places in their respective packages and we will offer them a tour experience they can
be remembered for the rest of their lives.
5.2 Key Resources
Personnel (staff)
Access Travels will rely on its well trained staff to offer good quality service to the customers.
Staff will be the key for success of the business therefore the company intends to employ/recruit people
who are specialized in dealing with disabled people. These well trained personnel will be good
ambassadors for the quality of service that we intend to offer to our valued customers.
Personalized vehicles
Access Travels will have personalized vehicles offering more functionality compared to the
public transport cars. The cars will have features such as a temporary ramps, replaceable/adjustable
seats, hydraulic lifts etc. This kind of a car will offer easy boarding for our customers, ability to carry their
equipments etc.
Equipment renting
Access Travels will offer renting services for equipments on a daily basis. Our customers won’t
bother to take their wheelchairs wherever they go. The company plans to rent these kinds of
equipments even to customers who don’t intend to tour with us. The company will be operating an
equipment renting service to anyone who comes to Blekinge.
Company’s Website
Access Travels will have a good user friendly website that will support visual impaired use and
also have brochures with Braille functionalities. Our customers will get help on booking flights, arranging
for hotel etc. The website will include all important information that is essential for our customers, i.e.
hotels, museum, shopping centers etc that have accessibility options.
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Attractive personalized packages
The company has a list of packages that a customer can choose from. The packages are
prepared in such a manner that each package that our customer chooses will produce maximum fun
experience. The combination of activities included in the packages will be unique and affordable. This
will guarantee customer satisfaction and create goodwill to our company.
Attractive group and students discounts
The company will be offering special discounts to customers who come in groups and to students.
Partnerships
Access Travels intends to be in partnership with hotel industry like Scandic, Camping facilitators,
health clubs and spas, Disability equipment manufacturers, companies in entertainment business in
order to fully offer a competitive quality service. These partners will help the company be strong with
regard to the quality of service offered, be able to lower our prices and have an upper hand in
negotiating best deals for our customers.
Capital
The company needs capital in order to have a successful start. The capital acquired will assist in
setting up all necessary resources required for the business and also to cover the operations cost for a
couple of year while the business is growing.
5.3 Key Processes
The company has identified key processes that will lead to its success, these processes are,
Marketing
The company intends to use its official website, Local municipality’s tourist bureau,
organizations dealing with disabled people in and around Europe, social and networking communities,
the architect professionals in the region and frequent advertisements on News papers in order to reach
the intended customers.
Solution driven approach (equipments)
Access Travels is dedicated to offer cutting edge solutions to the challenges that disabled people
face in the tourism activities. The necessary equipments such as customized cars will play a big role in
the best performance of the company.
22. 22
High volume business
The company intends to capture groups of customers like students and friends who come in groups due
to attractive group pricing mode. The high volume will ensure a stable company growth and profit. We
expect more than 300 customers the first year and the number to double every following year.
5.4 Profit Formula
The success of any business is measured on the profit it can generate. Access Travels will deploy several
measures in order to make sure that we attain a considerable profit level. Some of techniques include:
Low group price (group discounts)
By lowering the price for group customers the company will be able to recruit a big volume of potential
customers and generate huge income in one round which will guarantee good profit for the company.
Affordable individual prices
The company will strive to make sure that the individual prices are low as much as they can be
based on customer’s requirement. This will help in attracting customers because many potential
customers will be able to afford our services.
High resource velocity
Access Travels will be able to generate profit by utilizing resources efficiently by keeping vehicles
and equipments busy in our tour operations and whenever the company has no planned tours, the
equipments will be employed to schools and other tourism companies as needed.
Less administrative costs and overheads
The company will implement cost cutting means by having less administrative costs, small
sufficient office space and overheads without affecting the quality of services offered. The plan for the
company is to employ one dedicated person who will be responsible for handling all office transactions.
Negotiated best deals with vendors
Access Travels will negotiate best deals with the potential partners in hotel industry, Disability
equipment manufacturers and companies in entertainment business. By having a high negotiation
power, the company can generate profit by negotiating best conditions for business.
Cost sharing option
Access Travels will utilize a cost sharing scheme. The company will be open to sharing cost in things like
Office space and by sharing IT infrastructure with other companies.
23. 23
Business model:
This Business model is adopted from the author of “Seizing the white space”- Mark W. Johnson
Customer Value Proposition (CVP)
Provide safe, accessible tourism with unique experience
at an affordable price
Profit Formula
Low group price (group discounts)
Affordable individual prices
(nominal prices maintained as low
as possible based on customer’s
requirement)
High resource velocity (keeping
vehicles and equipments busy
employing them with schools and
other tourism companies)
Less administrative costs and
overheads (one dedicated person
handling all office transactions, a
small sufficient office space etc)
Negotiated best deals with
vendors (High negotiation power)
Cost sharing option
Key Resources
Personnel (staff)
Personalized vehicle
Equipment renting
Website
Attractive personalized
packages
Attractive group and
students discounts
Partnerships (hotels,
equipment
manufacturers,
entertainment business)
Capital
Key Processes
Critical information
resource
Solution driven
approach
(equipments)
High volume business
Marketing
24. 24
6.0 Implementation plan:
6.1 Vision:
Access Travel’s vision is to be able to offer unique high quality service at an affordable price. By
offering good tour packages, the company will be able to provide outstanding value to customers. The
company’s founders have extensive knowledge on innovation areas and will be able to develop new
innovative service lines.
6.2 Positioning:
Access Travels has positioned itself in offering tourism service for Disabled people, Elderly
people and visually impaired people. Currently no company offers a dedicated tour service for this group
of customers.
6.3 Pricing:
Prices vary approximately from SEK 5000 – 8000 depending on the type of package chosen and
season. Accommodation and regular course meal is not included in the package price.
6.4 Sales strategy:
Access Travels will have brochures on services offered by the company to its customers,
discounts and details on hotels, shopping spots etc. The company will provide access to a complete
database on list of all available accessible places in the whole of region Blekinge.
6.4.1 Sales forecast:
According to the analysis done, Access Travels expects to be able to get 300 customers in the
first year. For the second year the company projects the number of customers to be 600 and for the
third year the expected number of customers is 1000. These projections will make sure that the
company generates enough income to sustain the business and make profit.
25. 25
6.5 Promotions:
Access Travels will use different media streams for promotional purposes. Newspapers,
Television, radio, posters and magazines will be put into use in order to make sure that customers get to
know our company and the unique quality service that we offer.
7.0 Risks and opportunities:
The risks and opportunities associated with Access Tourism can be highlighted by application of SWOT
Analysis:
Strengths
Quality and Unique service
Specific Market focus
Cost effectiveness at a fairly affordable price worth the service
High resource velocity relating to effective utilization of the resources and in quick turns to
make sure that business moves on towards a sustaining path
Reliable and trained personnel in the organization
Flexibility in our strategies based on outcomes
Less administrative costs and overheads which in turn helps to offer good value to the
customers
Weaknesses
Our company is a new entrant to the market and is yet to build a reputation in the market
Although the business has multiple suppliers for most of the inputs, the fact has to be realized
that the company depends on suppliers and business partners
0
500
1000
1500
year 2012 year 2013 year 2014
Number of customers
No. of
customers
26. 26
Tourism business in Sweden is seasonal due to changing weather conditions and business gets
unpredictable during some months
Unreliable cash flow at the initial stages of the business
Opportunities
Early entrant and basket of opportunities for growth and improvements
Good market share possible with good and quality service
There shall be external organizations like the NGO’s, government and other regulatory who shall
offer a supporting hand to our company
Threats
The business idea is easily replicable by existing competitors in the market.
There are big and established players as indirect competitors who have good reputation but a
different target market. A change in focus by competitors shall sweep our market.
There is a threat of trained employees leaving the company to join other operators for better
prospects.
8.0 Offer to Investors:
Total Financial Requirement : SEK 2,775,800
Access Travels is a start-up and requires financial investment for acquiring resources such as
equipments, vehicles, webhosting, office facilities etc. The company is looking for investors who
have experience in the Tourism Industry and can stay along for at least 2 years. This is important
as the investor can understand the working of a tourism company and be a business advisor.
Access Travels expects to offer 20% of the business in return for the total finance required after
the details on the pre-money and post-money evaluations. The investors will be shareholders of
the business. We will discuss the share holder agreement on mutually beneficial terms with
investors. The financial pattern suggests that the business will be balanced. The financial
structures are calculated with cushions considering risk factors into account. That doesn’t mean
that the business is under estimated but offers a realistic view on the higher probability for the
calculation to be realized in the actual business.
27. 27
The pricing strategy is formulated well to satisfy both the customers and the investors need and
Access Travels expects success.
Access Travels will have to get general insurances and other documents required for any tourism
operator. The company is working towards tax benefits / waiver with the government
considering the kind of services for the disabled and elderly people.
8.1 Exit
The shareholders are expected to stay on for a minimum period of at least 3 years to benefit
from the business. The return on investments is expected to be high considering the nature of
the business and the current market situation in Tourism Industry. The service will be of high
demand in the market segment under consideration and will revolutionize the Industry. The exit
plan shall be through an IPO (Initial Public Offering) or investors selling shares to another or a
new investor.
The business shall be a fit by generating value for the customers and to capture significance for investors
and share holders. This business is a successful venture in the long run for share holders and it will be an
interesting opportunity to be part of this champion business.
29. 29
9.0 REFERENCES
BMWA – Federal Ministry of Economic and Labour (2004) Economic Impulses of Accessible Tourism for
All. Report, Berlin, Bundesministerium für Wirtschaft und Arbeit
Burnett, J.J. & Bender Baker, H. (2001) Assessing the Travel-Related Behaviours of the Mobility-Disabled
Consumer. Journal of Tavel Research, Vol. 40 (1), pp. 4-11
Eurostat (2003) Employment of Disabled People in Europe in 2002. ISBN 1024-4352, catalogue number:
KS-NK-03-026-EN-N, European Communities 2003, viewed on 06th of April 2005.
http://epp.eurostat.cec.eu.int/cache/ITY_OFFPUB/KSNK-03-026/EN/KS-NK-03-026-EN.PDF
Eurostat (2005a) Tourism in the Enlarged European Union. ISSN 1561-4840, catalogue number: KS-NP-
05-013-EN-N, European Communities 2005, viewed on 06th of April 2005.
http://epp.eurostat.cec.eu.int/cache/ITY_OFFPUB/KS-NP-05-013/EN/KS-NP-05-013-EN.PDF
Eurostat (2005b) Population and Social Conditions: Percentual Distribution of Types of Disability by Sex
and Age Group. All accessed on 13th of June 2005. http://epp.eurostat.cec.eu.int
NOP Consumer (2003) Holiday-Taking and Planning Amongst People with a Disability, Ref. 434906, NOP
Consumer, London
Shaw, G. & Coles, T. (2004) Disability, Holiday Making and the Tourism Industry in the UK: a preliminary
survey. Tourism Management, Vol. 25 (3), pp. 397-404
Statistisches Bundesamt (2003a) Statistik der Schwerbehinderten Menschen. Viewed on 6th of May
2005. http://www.destatis.de/download/d/solei/solei_2001.xls
Statistics Sweden, Labour market situation for disabled persons – 4th quarter 2008.
U.S. Census Bureau (2005) IDB Summary Demographic Data. International Database. Viewed on 01st of
July 2005. http://www.census.gov/
